7digital explained

7digital Group Plc
Type:Public – LSE: 7DIG
Foundation:January 2004
Location City:London
Location Country:United Kingdom
Location:69 Wilson Street, London EC2A 2BB
Locations:5
Key People:Paul Langworthy (CEO)
Michael Juskiewicz (CFO)
Samantha Sawyer (CCO)
Jon Hilbrants (CCO)[1]
Area Served:20 countries (August 2023)
Industry:B2B Music Technology Services
Owner:Songtradr
Services:White-label music solutions, API, music download stores, production, streaming music services, radio services, voucher promotions, loyalty schemes
Revenue:EUR 6.69 million (2021)
Num Employees:70
Subsid:Entertainment News, Unique The Production Company, Smooth Operations, Unique Interactive, Above The Title

7digital Group PLC is a British publicly listed company that offers access to music, tracking and reporting for clients. London-based, 7digital provides end-to-end music services for the fitness, social media, DSPs, and gaming industries with brands such as Barry's and Triller.[2] [3] Advertising Age described 7digital (Zdigital in Australia) in 2008 as a British download store,[4] while the New York Times referred to them as a digital music company.[5] [6] 7digital's Smooth Operations, Unique Production and Above the Title companies are now branded 7digital Creative, and produce content for BBC Radio 1, Radio 1Xtra, BBC Radio 2 and BBC Radio 3.In 2009 HMV bought 50% of 7digital.[7] In 2019, the company replaced their second CEO,[1] Simon Cole,[8] who had replaced founder/CEO Ben Drury.[5] In February 2023, it was announced 7digital had been acquired by the Santa Monica-headquartered B2B music licensing company, Songtradr.[9]

Overview

Initially their API was used by Guvera, Onkyo, Samsung, BlackBerry, HMV, musical.ly (now TikTok) and Technics. They subsequently partnered with Triller, FORME Life, Soundtrack Your Brand, Global Eagle, Grandpad, Apex Rides, and Fender.

History

2004–2009

7digital was founded in 2004 by Ben Drury and James Kane[10] as a B2B digital music services company, building music download stores for record labels, brands and other retailers. 7digital Direct to Consumer (D2C) service was launched in 2005.

7digital is backed by technology venture capital firm Balderton Capital (formerly Benchmark Capital Europe).On 28 January 2008, 7digital raised £4.25m in its series B investor round, securing investment from various groups including Sutton Place Managers. The investment was to be used to launch 7digital.com in more European countries and the United States,[11] along with expanding the sites offerings to include downloadable video and computer games.[12]

In September 2008, 7digital.com was the first company in Europe to launch DRM-free MP3 downloads with all four major record labels.[13]

As of October 2008, 7digital employed 45 people in London and had over 1.3 million registered customers.[14]

On 3 August 2009, HMV bought a 50% holding in 7digital from its venture capital owners.[15]

2010-2019

In 2011, 7digital expanded with an office in Luxembourg and in early 2012, they expanded to the US with an office in San Francisco, CA.[16]

In October 2012, 7digital secured $10 million in funding from two new investors,[17] Dolby and Imagination Technologies.[18] HMV's stake was previously reduced to less than 20%,[19] and following HMV entering into administration, retail restructuring specialists Hilco, are now the holders of these shares.

On 25 November 2013, UBC Media announced merger plans with 7digital by way of a reverse takeover.[20] [21] The merger was completed in May 2014, forming 7digital Group Plc.[22]

The company entered a business relationship with MediaMarktSaturn in 2017, which it ended in 2019, in exchange for a cash payment of €4 million. The end of the partnership led to a need for 7digital to raise capital by the third quarter of 2019 to remain operational. The share price fell in response to these developments, with a loss of 63% on 9 April and further losses on 10 April 2019.[23]

Clients

7digital's agnostic platform is used for building products on any type of connected device.

HMV

7digital is independent of their business since significant investment they received in 2012. Re-launched in October 2013, HMVdigital.com is a download store.[45]

Ubuntu One Music Store/Canonical

7digital collaborated with Canonical Ltd. to provide the Ubuntu One Music Store in the Ubuntu Operating System starting from Ubuntu 10.04.[46]

On 2 April 2014 Canonical announced the closure of all of the Ubuntu One file services.[47]

Spotify

Spotify users from the UK, France, Norway, Finland, Spain, The Netherlands and Sweden were able to purchase tracks to download (if available) from 7digital.[48] This was done by right-clicking and selecting the 'Buy From' link. However, Spotify launched their own purchase service during 2011 which replaced 7digital.[49]

Other

In October 2014, it was announced that 7digital would work with will.i.am[50] for his new wearable smart device.

In November 2014, 7digital partners Technics launched 'Technics Tracks', a new premium Hi-Resolution audio service.[51]

7digital.com

Alongside its B2B digital music services business, 7digital offers music tracks direct to consumers in MQA, MP3 320, 256, M4A, 16-bit and 24-bit FLAC audio.[52]

The 7digital mobile app has been pre-installed on devices through partnerships with Acer,[53] HTC,[54] Samsung, BlackBerry, Pioneer,[55] HP, Dell, and Sonos.

7digital's Indiestore launched in early 2006 and allowed unsigned artists and independent labels create their own digital music download store for free.[56] The Indiestore was discontinued in 2010.[57] 7digital directs independent artists to work with independent aggregators, where they will be able to service their music to a variety of music retailers.[58]

In December 2014, 7digital became the first music platform to adopt Meridian Audio's high-quality MQA format for streaming/downloads.[59]

Geographical availability

As of July 2015, 7digital operated in 82 countries.[60] On May 19, 2017, 7digital announced the sudden closure of its EU store,[61] though it continued to have stores for some individual European nations. As of 2023, the service is still available in 20 countries.

See also

Notes and References

  1. Web site: 7digital group appoints Paul Langworthy to its board of directors as new CEO . 18 July 2019.
  2. News: 7digital signs deals with Barrys and Volava as it pursues the home fitness market. 9 July 2021. Naomi . Ackerman. 9 July 2021. The Evening Standard.
  3. Triller signs contract with 7digital, adding 80 million song catalog for users to soundtrack clips. 12 August 2020. Tatiana . Cirisano. 12 August 2020. Billboard.
  4. News: Advertising Age. Minor Chords . 26 June 2008.
  5. News: The New York Times. Apple Unveils a 'Cloud' Music and Storage Service. 6 June 2011. Helft. Miguel.
  6. News: . Digital Notes: Samsung Music Hub Takes on Just About Everyone . in partnership with another music company, 7digital . Ben . Sisario . 29 May 2012.
  7. News: HMV takes 50% stake in 7digital . BBC . 3 September 2009.
  8. Web site: Year End Trading update . February 12, 2018.
  9. Web site: 2023-02-08 . Songtradr to acquire 7digital, a UK publicly listed B2B music technology company, in $23.4m deal . 2023-02-10 . Music Business Worldwide . en-US.
  10. Web site: 7digital was always meant to be a complete media marketplace. Emma. Barnett. 9 October 2009. The Telegraph.
  11. 7digital Agrees Terms of $8.5 Million Investment to Capitalise on Rising Digital Media Demand . 7digital . 28 January 2008 . 25 February 2008 . https://web.archive.org/web/20080304124757/http://www.7digital.com/business/press2008.aspx?28_01_08. 4 March 2008 . dead.
  12. News: UK iTunes rival 7digital to hit US and Europe . 25 February 2008 . The Guardian . London . Owen . Gibson . 28 January 2008. https://web.archive.org/web/20080129172231/http://www.guardian.co.uk/media/2008/jan/28/digitalmedia.mediabusiness?gusrc=rss&feed=media. 29 January 2008 . live.
  13. News: 7digital brings more DRM-free MP3 music downloads to the UK. 16 September 2008. Jack . Schofield. 2 December 2014. The Guardian.
  14. Web site: 7digital Group Plc – story of the company. Reshenia. 2 December 2014.
  15. News: HMV takes 50% stake in 7digital. BBC. 3 September 2009. 2 December 2014.
  16. Web site: 7digital Expands U.S. Team With Key Hires From eMusic, Apple, IODA, Rightsflow. hypebot.com. 6 June 2012. Bruce. Houghton. 2 December 2014.
  17. News: Music Platform 7digital Nabs $10 Million in Funding To Expand Its Profitable Activities. 31 December 2014.
  18. News: Samsung's Music Partner 7digital Picks Up $1.6M Loan, Enters into Reverse Takeover Talks With UBC . Ingrid . Lunden . TechCrunch . 25 November 2013.
  19. News: 7digital boss says HMV administration will not affect business. 31 December 2014.
  20. News: UBC Media to buy 7digital Group. 25 November 2013. 2 December 2014. Yahoo! Finance. dead. https://web.archive.org/web/20141129221135/https://uk.finance.yahoo.com/news/ubc-media-buy-7digital-group-112500955.html. 29 November 2014. dmy-all.
  21. News: 7Digital lines up reverse takeover of UBC Media. 25 November 2013. Jason . Deans. The Guardian. 2 December 2014.
  22. News: 7digital merger with UBC complete. Complete Music Update. 21 May 2014. Chris. Cooke. 2 December 2014.
  23. News: 7digital Death Watch – Company Warns Against Raising Desperately-Needed Capital . . Daniel . Sanchez . 10 April 2019.
  24. News: 7digital signs deals with Barry's and Volava as it pursues home fitness market. Evening Standard . 9 July 2021 . Stuart . Dredge. 9 July 2021.
  25. News: Kuaishou has 305m daily users and now licensed music too. Musically . 12 March 2021 . Stuart . Dredge. 12 March 2021.
  26. News: Apex Rides hopes to take on Peloton and it's licensing music. Musically . 9 September 2020 . Stuart . Dredge. 9 September 2020.
  27. News: TikTok Rival Triller Inks Deal with B2B Music Company 7digital for Access to Global Catalog of 80M Tracks. Music Business Worldwide . 12 August 2020 . Murray . Summers. 12 August 2020.
  28. News: Dredge. Stuart. Musical.ly Strikes Deal With 7digital. 6 May 2016. Music Ally.
  29. News: Washenko . Anna . 7digital to power eMusic . 21 January 2016.
  30. Web site: Guvera partners with 7digital . 11 June 2014 . Andy . Malt . 2 December 2014.
  31. Guvera Follows Spotify, Others into Asia . 31 July 2014 . Glenn . Peoples . 2 December 2014 . Billboard.
  32. News: Guvera launches in India . Complete Music Update. 10 November 2014 . Chris . Cooke . 2 December 2014.
  33. News: Onkyo and 7digital to Launch high-res Music Store in Europe and US. Whit Hi Fi . 2 June 2014 . Joe . Cox . 2 December 2014.
  34. Web site: Cox . Joe . Onkyo and 7digital to launch high-res music store in Europe and US . What Hi-Fi. 2 June 2014 .
  35. Web site: Onkyo Music. Onkyo Music.
  36. News: 7digital pens deal with Spanish Broadcasting System for radio streaming platform LaMusica.com. Music Week . 30 September 2014 . Murray . Stassen. 2 December 2014.
  37. Web site: Keach . Sean. Technics launches 7Digital powered hi-res music service. Trusted Reviews . 20 November 2014. 21 September 2015.
  38. Web site: Technics TRACKS Technics Deutschland & Österreich. www.technics.com. 2019-11-11. 15 September 2020. https://web.archive.org/web/20200915191947/https://www.technics.com/de/technicstracks/. dead.
  39. News: Open music platform firm 7digital to power the Music Hub app on Samsung's Galaxy S4. The Next Web . 15 March 2013 . Nick . Summers. 2 December 2014.
  40. News: 7Digital and Samsung Team Up for Free Music Streaming. Mobile Marketing. Ed. Owen. 2 August 2012. 29 May 2013. dead. https://web.archive.org/web/20131104014751/http://mobilemarketingmagazine.com/content/7digital-launches-free-streaming-service-samsung-galaxy-siii. 4 November 2013. dmy-all.
  41. News: 7digital to be pre-installed on Samsung Galaxy S4. Music Week. Tom. Pakinkis. 15 March 2013. 29 March 2013.
  42. News: RIM taps 7Digital to power official BB10 music store. Engadget . 18 October 2012 . Alexis . Santos. 2 December 2014.
  43. News: BlackBerry and 7digital strike deal to launch new music service . The Guardian . December 2014.
  44. News: RIM taps 7Digital to power official BB10 music store. Engadget . December 2014.
  45. News: 7digital to power HMV's digital music services in Canada. Music Week. December 2014.
  46. News: UbuntuOne Music Store: How a music service should be. Tech Republic. December 2014.
  47. Web site: Shutting down Ubuntu One file services. Canonical. 2 April 2014. Jane. Silber. 2 December 2014.
  48. Web site: Spotify's free music model — binge until your ears are fat! . Daily Music Guide . 11 April 2009 . 16 April 2009 . Allan . MacLean . https://web.archive.org/web/20090429225126/http://www.dailymusicguide.com/Features/spotify-and-the-free-music-model-11042009-1803.aspx/. 29 April 2009 . dead.
  49. News: 7digital Founder: Spotify has been planning its own download service for over a year. The Next Web. December 2014.
  50. News: Will.i.am to go head to head with Apple in smart watch battle. 12 October 2014. Anna . White. 2 December 2014. The Telegraph.
  51. http://about.7digital.com/news/technics-launches-%E2%80%98technics-tracks%E2%80%99-new-premium-hi-resolution-audio-service|date=November 2014
  52. Web site: 7digital targets audiophiles with FLAC Format downloads. 10 August 2011. Paul. Lamkin. 2 December 2014. Pocket-lint.
  53. News: 7digital's MP3 download app will come pre-installed on Acer's Windows 8 machines. The Next Web. 10 December 2012. Paul. Sawers. 2 December 2014.
  54. News: 7digital Apps Gets HTC One Preload. Mobile Marketing Magazine. 19 April 2013. David. Murphy. 2 December 2014.
  55. 7digital Brings High Quality Music into the Dashboard Through the Pioneer AppRadio Platform. https://web.archive.org/web/20141129092511/http://www.reuters.com/article/2012/12/05/idUS126688+05-Dec-2012+BW20121205. dead. 29 November 2014. 5 December 2012. Racepoint Group UK. Reuters. 2 December 2014.
  56. Web site: Unsigned indie bands find fame with 7digital: 7digital's indiestore features over 50,000 indie artists. TechRadar. 5 June 2008. Adam. Hartley. 2 December 2014.
  57. Web site: More free mp3s. 15 January 2011. 11 December 2014. 11 December 2014. https://web.archive.org/web/20141211142914/http://systemculture.com/blog/more-free-mp3s/. dead.
  58. Web site: Unsigned indie bands find fame with 7digital. 5 June 2008 .
  59. News: 7digital announces high quality audio strategy with new Meridian MQA format. December 2014.
  60. Web site: Stassen. Murray. 7digital inks Pan-African deal with SA collection society CAPASSO. Music Week. 21 July 2015.
  61. https://eu.7digital.com/features/WRLfEScAAOaLHKrn/eu-store-closure

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